Iberdrola forced to sell second green hybrid at bargain yield

Spanish utility Iberdrola had significant success with its debut green hybrid bond in November when it received €3.2bn of orders. However, its second such bond failed to tighten from initial price thoughts when it was issued this week.

By Nigel Owen

22 Mar 2018

The Baa1/BBB+/BBB+ rated issuer had hoped to benefit from the extra investors a green bond attracts, as well as the excess demand for Telefónica’s recent dual-tranche hybrid offering — which was priced before the recent heavy supply and spread widening in corporate bond market.